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Keyera Concludes Long Term Debt Private Placement

CALGARY, Sept. 4 /CNW/ - Keyera Facilities Income Fund (TSX: KEY.UN;
KEY.DB) ("Keyera") announced today that it has concluded its previously
announced private placement of long term senior unsecured notes in the
principal amount of $120 million, denominated in Canadian dollars, to a group
of institutional investors in Canada and the U.S. The notes were issued in two
tranches: $60 million due in 2017 bearing interest at 5.89% and $60 million
due in 2022 bearing interest at 6.14%.
The net proceeds from the sale of the notes will be used to repay
borrowings under Keyera's short term bank credit facilities and will be a
source of long term funding for Keyera's ongoing growth capital program,
working capital requirements and general corporate purposes. Keyera has
received $80 million of the proceeds from the offering, with receipt of the
remaining $40 million scheduled for December 2007.
"We are pleased to have successfully arranged long term financing at
favourable rates", said David Smith, Executive Vice President and CFO. "This
transaction will provide Keyera with financing flexibility to fund our long
term growth strategy".
About Keyera Facilities Income Fund
Keyera Facilities Income Fund (TSX: KEY.UN; KEY.DB) operates one of the
largest natural gas midstream businesses in Canada. Its business consists of
natural gas gathering and processing as well as the processing,
transportation, storage and marketing of natural gas liquids (NGLs) and crude
oil midstream activities.
Keyera's gas processing plants and associated facilities are
strategically located in the west central and foothills natural gas production
areas of the Western Canadian Sedimentary Basin. Its NGL and crude oil
infrastructure includes pipelines, terminals and processing and storage
facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American
NGL hub. Keyera markets propane, butane and condensate to customers in Canada
and the United States.
This document contains forward-looking statements that involve known and
unknown risks and uncertainties, many of which are beyond Keyera's control.
The forward-looking statements are based on management's current expectations
and assumptions relating to Keyera's business and the environment in which it
operates. As the results or events predicted or implied in these
forward-looking statements depend upon future events, actual results or events
may differ materially from those predicted. Some of the factors which could
cause actual results or events to differ materially include the satisfaction
of the conditions to closing contained in the note agreements, the ability of
Keyera to successfully implement strategic initiatives, whether such
initiatives yield the expected benefits, operating and other costs, future
operating results and the components of those results, fluctuations in the
demand for natural gas, NGLs and crude oil, the activities of producers,
competitors and others, the weather, overall economic conditions and other
known or unknown factors. There can be no assurance that the results or
developments anticipated by Keyera will be realized or that they will have the
expected consequences for or effects on Keyera. For additional information on
these and other factors, see Keyera's public filings on www.sedar.com. Unless
otherwise required by applicable laws, Keyera does not intend to publicly
update or revise forward-looking statements, whether as a result of new
information, future events or otherwise.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any sale of
securities in any state in the United States in which such offer, solicitation
or sale would be unlawful. The securities referred to herein have not been and
will not be registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
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